US files £61bn civil lawsuit against Volkswagen

Volkswagen is facing fines of up to £61 billion in the US after the government filed a civil lawsuit against the company for allegedly cheating emissions with illegally installed software.

The lawsuit filed on behalf of the US Environmental Protection Agency alleges that Volkswagen violated the Clean Air Act when it fitted approximately 580,000 cars with tampered emissions control systems that allowed them to exceed safe emission levels. It is the latest in the Volkswagen emissions saga, which has been ongoing since US regulators discovered the faulty devices back in September. "With today's filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution," said Cynthia Giles, an administrator for the EPA. "So far, recall discussions with the company have not produced an acceptable way forward. These discussions will continue in parallel with the federal court action."

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Volkswagen could potentially face up to £61 billion ($90 billion) in fines. That's much higher than the initial £12.2 billion ($18 billion) that the US regulator estimated. The lawsuit calls for Volkswagen to pay hefty civil penalties per vehicle and per day that those vehicles drove in violation of restrictions:

£22,000 ($32,500) per affected car made before 2009

£25,500 ($37,500) per affected car made after 2009

Between £1,900 and £2,500 ($2,750 and $3,750) per "defeat device" found on the affected cars

Up to £22,000 ($32,500) per day of violation occurring before January 13, 2009

Up to £25,500 ($37,500) per day of violation occurring after January 13, 2009

Reuters previously reported that Volkswagen could afford to pay fines up to £30 billion before it would have to start selling off assets. "Car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors," said John Cruden, assistant attorney general for the US Justice Department's environment and natural resources division. "The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws alleged in the complaint."

The complaint alleges that some 580,000 US Volkswagen diesel cars were fitted with emissions control devices that only limited emissions when the car detected that it was being tested for compliance with EPA standards. According to the EPA this resulted in cars that had passed emissions standards tests emitting up to 40 times more oxides of nitrogen than is permitted.

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Diesel pollution contributes to photochemical smog -- which we saw across Europe last summer -- and is linked with asthma and other respiratory diseases. It can also cause premature death and damage to lung tissue.

A spokesperson for Volkswagen said the company will continue to cooperate with the EPA to remedy the faulty vehicles. They also said the company is developing "an independent, fair and swift process for resolving private consumer claims relating to these issues." "We will continue to cooperate with all government agencies investigating these matters," the Volkswagen spokesperson said in a statement.

Up to 11 million vehicles around the world were said to be rigged with emissions cheating software -- and as many as 1.18 million of those were found in the UK. The effected UK models included Audi, Seat, Skoda, Volkswagen cars and Volkswagen commercial vehicles. The fault lies in the EA 189 diesel engine, various transmissions and some country-specific designs. In the US, the Porsche Cayenne and Beetle were also deemed faulty.